Why Shares of MagnaChip Semiconductor Slumped Today

Shares of semiconductor manufacturer MagnaChip Semiconductor Corp. (NYSE: MX) slumped on Thursday after the company announced a secondary offering by existing shareholders. A little over 4 million shares are expected to be sold, with the company set to receive no proceeds from the sale. The stock closed on Thursday down about 11.5%.

MagnaChip announced on Wednesday that shareholders affiliated with Avenue Capital Management II, L.P. intended to offer and sell about 4.09 million shares of the company's common stock. Barclays will be the sole book-running manager and underwriter.

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Source: Fool.com